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RECORD OF CONVERSATION AT THE STATE DEPARTMENT ON 6 JULY AT 8.30 AM.
Present:
Mr HA H Cortazzi
Mr CW Squire
RECEIVED IN
REGISTRY NEL 5.1
KOREA
1.
18 JUL 1977
NKK OYO JVP
Mr R Holbrooke
Mr R Oakley Mr W Gleysteen Mr E Heginbotham Mr A Romberg Mrs E Colert
Mr Holbrooke said the problem of building a strong domestic consensus was proving somewhat more difficult than anticipated. The President was firm in his decision and the first units would be withdrawn next year. Mr Gleysteen said General Brown would visit Seoul this month to discuss assistance compensation and details of how the withdrawal should he conducted. The next step was to compile a legislative package. Paradoxically whilst the Congress had been less supportive of the President's ideas, they were also wary of providing funds to support South Korea. The internal US investigation of "Koreagate" was a complicating factor. Mr Holbrooke said no senators were involved, only the House. In the public mind all these issues were linked up with human rights. The President had been careful not to link human rights and troop withdrawals. Mr Cortazzi said we constantly raised human rights questions with Korean Ministers and officials and would continue to do so. Mr Holbrooke said that this was helpful and we should tell the Americans what we were doing. Mr Cortazzi added that our Ministers had decided to defer recognition of North Korea. Mr Cortazzi also reminded Mr Holbrooke of the need for an early solution to the problem of costs for UNC Rear.
JAPAN
2. Mr Cortazzi said we were concerned over the imbalance in UK Japanese trade; we wished to correct this through better access to the Japanese market, not via protectionist steps. HMG were however under strong domestic pressure from the unions and the CBI. The Japanese must open up their markets substantially and continue restraints in sensitive sectors. We dealt with these issues bi- laterally and through the Nine. We hoped the European Commission would also have an active role. Mr Holbrooke said Mr Vance had made the same point in a recent speech. The Japanese had a surplus on current account of US$6-7 billion, yet they had told the President early in his Administration that they would have a small deficit. The President had focussed on that misleading estimate.
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